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Advant-e Corporation Announces Third Quarter 2004 Results
Company Reports 21% Increase in Revenue over 2003; Fifth consecutive profitable quarter


DAYTON, Ohio, Oct. 28 /PRNewswire-FirstCall/
-- Advant-e Corporation (OTC Bulletin Board: ADVC - News), a provider of Internet-based business-to-business electronic commerce services, today announced financial and operating results for the quarter ending September 30, 2004.

For the third quarter of 2004 the Company reported revenues of $920,038, a 21% increase over revenues of $759,865 in the third quarter of 2003. The increase in revenue was the result of continued growth and market acceptance of the Company's internet-based electronic commerce subscription services.

Net income for the quarter was $120,628, or $.02 per share, compared to $108,142, or $.02 per share for the same period in 2003. The third quarter of 2004 marks the fifth consecutive profitable quarter for Advant-e Corporation.

For the nine months ending September 30, 2004 the Company reported revenues of $2,610,655, a 23% increase over revenues of $2,124,351 in the same period in 2003. Net income for the period in 2004 was $342,212, or $.05 per share, compared to $32,339, or $.01 per share in the 2003 period.

Jason K. Wadzinski, President and CEO of Advant-e, stated, "I am pleased to report that we have achieved 22% pre-tax profitability and record revenues in the third quarter of 2004. Financially, we are stronger than we have ever been due to the fact that we are debt free and are adding to our cash balance. Our efforts to expand our solutions outside of the retail supply chain market are beginning to gain traction. I believe that our recurring revenue model, the exceptional value proposition we offer our targeted customers, and the recent promotion of Mike Bevis to President of Edict Systems will lead to continued growth for our company."

                     ADVANT-E CORPORATION AND SUBSIDIARY
         CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited)

                                      Three Months Ended    Nine Months Ended
                                         September 30,        September 30,
                                         2004     2003       2004       2003

    Revenue                          $920,038   759,865   2,610,655  2,124,351
    Cost of revenue                   309,224   268,342     913,705    877,506
    Gross margin                      610,814   491,523   1,696,950  1,246,845
    Marketing, general and
     administrative expenses          408,186   322,893   1,122,158  1,055,711
    Operating income                  202,628   168,630     574,792    191,134
    Interest                                -    33,003       2,180    139,365
    Income before taxes               202,628   135,627     572,612     51,769
    Income taxes                       82,000    27,485     230,400     19,430
    Net income                       $120,628   108,142     342,212     32,339
    Basic earnings per common share     $0.02      0.02        0.05       0.01
    Diluted earnings per common share   $0.02      0.02        0.05       0.01
    Weighted average common shares
     outstanding                    6,244,917 5,661,002   6,244,917  5,661,002
    Weighted average common shares
     outstanding, assuming dilution 6,634,107 5,908,532 6,  628,571  5,745,797


                     ADVANT-E CORPORATION AND SUBSIDIARY
              CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)

                                                 September 30,   December 31,
                                                      2004           2003
    Assets

    Current Assets
       Cash and cash equivalents                    $698,556        216,448
       Accounts receivable, net                      245,310        215,895
       Prepaid expenses and deposit                   23,026         16,187
       Deferred income taxes                          57,000        266,400
    Total current assets                           1,023,892        714,930
    Software development costs, net                  347,439        481,678
    Property and equipment, net                      282,646        168,687

            Total assets                          $1,653,977     $1,365,295

    Liabilities and Shareholders' Equity

    Current liabilities
        Accounts payable                             $32,396         72,172
        Accrued salaries and other expenses          130,588         71,867
        Deferred revenue                             107,760         90,931
        Notes payable                                      -         94,965
    Total current liabilities                        270,744        329,935

    Long-term liabilities
        Deferred income taxes                        177,000        156,000

            Total liabilities                        447,744        485,935

    Shareholders' equity
        Common stock, $.001 par value; 20,000,000
         shares authorized; 6,244,917 outstanding      6,245          6,245
        Paid-in capital                            1,476,088      1,491,427
        Accumulated deficit                         (276,100)      (618,312)

            Total shareholders' equity             1,206,233        879,360

            Total liabilities and
             shareholders' equity                 $1,653,977      1,365,295


                     ADVANT-E CORPORATION AND SUBSIDIARY
         CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)

                                                        Nine Months Ended
                                                           September 30,
                                                        2004          2003

    Cash flows from operating activities
       Net income                                     $342,212      32,339
       Adjustments to reconcile net income to net
        cash provided by operating activities:
          Depreciation                                  57,238      36,660
          Amortization of software development costs   250,828     214,942
          Deferred income taxes                        230,400      19,430
          Amortization of note discount resulting
           from valuation of warrants and beneficial
           conversion features                               -      45,379
          Increase (decrease) in cash arising from
           changes in assets and liabilities:
             Accounts receivable                       (29,415)    (37,200)
             Prepaid expenses                           (6,839)     26,455
             Accounts payable                          (39,776)    (98,357)
             Accrued salaries, interest and
              other expenses                            58,721       (164)
             Deferred revenue                           16,829      20,343

    Net cash provided by operating activities          880,198     259,827
    Cash flows from investing activities
       Purchases of equipment                         (171,197)    (28,181)
       Software development costs                     (116,589)   (110,757)
    Net cash used in investing activities             (287,786)   (138,938)
    Cash flows from financing activities
          Payments on notes                            (94,965)    (35,373)
          Payments of direct costs of securities
           registration                                (15,339)          -
    Net cash used in financing activities             (110,304)    (35,373)
    Net increase in cash and cash equivalents          482,108      85,516
    Cash and cash equivalents, beginning of period     216,448      98,740
    Cash and cash equivalents, end of period          $698,556     184,256
    Supplemental disclosures of cash flow information
     Interest paid                                      $3,014    137,804


About Advant-e

Advant-e, via its wholly owned and sole operating subsidiary Edict Systems, Inc., is a provider of Business-to-Business electronic commerce software and Internet-based applications specializing in Electronic Data Interchange (EDI) and XML-based solutions for recurring transactions. Advant-e specializes in horizontal transaction services via EnterpriseEC®, an Internet-based Trading Community Connectivity, Management, and Integration solution, and within specific industries via web-based EDI services including www.GroceryEC.com, www.RetailEC.com, www.AutomotiveEC.com, www.CPGSupplier.com, and www.WebEDI.com.

Additional information about Advant-e Corporation can be found at www.Advant-e.com and www.edictsystems.com or by contacting investor relations at (937) 429-4288. The company's email is info@edictsystems.com.

Copyright © 2000-2009 Advant-e Corporation
All Rights Reserved
Phone: (800) 443-3428
Fax: (937) 429-4309
Please send comments on this page to info@edictsystems.com


The information in this news release includes certain forward looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements to the future financial performance of the company. Although the company believes that the expectations reflected on its forward looking statements are reasonable, it can give no assurance that such expectations or any or its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development and acceptance, the impact of competitive services and pricing, or general economic risks and uncertainties.